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General Suharto stepped down 15 years ago tomorrow. Here's an excerpt of today's New York Times story on the Indonesian strongman's legacy:
"Mr. Suharto’s spirit continues to loom over modern-day Indonesia. He brought the country back from the brink of political, social and economic calamity in the mid-1960s, dramatically reduced poverty and by the early 1990s had turned Indonesia into one of the Asian tiger economies. But he also governed with an iron fist, sending his jackbooted military into separatist-minded regions, jailing and exiling political enemies, quashing democratic institutions and the news media, and presiding over what some claim is one of the most corrupt governments in modern history.....Tuesday is the 15th anniversary of Mr. Suharto’s resignation as president. .... Since then, Indonesia has undergone a dramatic transformation toward democracy and now has open elections and the world’s 16th-largest economy. Yet corruption remains endemic, crime is higher than during Mr. Suharto’s “New Order” regime, and Jakarta and other large cities have chronic traffic problems".
"Growth in Pakistan has never translated into budgetary security because of the way our political system works. We could be collecting twice as much in revenue - even India collects 50% more than we do - and spending the money on infrastructure and education. But agriculture in Pakistan pays no tax because the landed gentry controls politics and therefore has a grip on every government. Businessman are given state loans and then allowed to default on them in return for favors to politicians and parties. Politicians protect corrupt officials so they can both share the proceeds.
And every time a new political government comes in they have to distribute huge amounts of state money and jobs as rewards to politicians who have supported them, and short term populist measures to try to convince the people that their election promises meant something, which leaves nothing for long-term development. As far as development is concerned, our system has all the worst features of oligarchy and democracy put together.
That is why only technocratic, non-political governments in Pakistan have ever been able to increase revenues. But they can not stay in power for long because they have no political support...For the same reason we have not been able to deregulate the economy as much as I wanted, despite seven years of trying, because the politicians and officials both like the system Bhutto (Late Prime Minister Zulfikar Ali Bhutto) put in place. It suits them both very well, because it gave them lots of lucrative state-sponsored jobs in industry and banking to take for themselves or distribute to their relatives and supporters."
"Rather than being eaten by a pride of lions, or even torn apart by a flock of vultures, the fate of Pakistan's national resources more closely resembles being nibbled away by a horde of mice (and the occasional large rat). The effect on the resources, and on the state's ability to do things, are just the same, but more of the results are plowed back into the society, rather than making their way straight to bank accounts in the West. This is an important difference between Pakistan and Nigeria, for example."
Here's an interesting debate on democracy vs dictatorship in terms of development:
Dictatorship does not necessarily result in development, defined by human well-being(which incorporates education, health, income, and safety from internal and external threats)and even by personal discipline. Furthermore, there is no conclusive evidence proving that either dictatorship nor democracy cause development. Nonetheless, we will prove dictatorships incorporate more control over the variables that define development so in consequence are a better course to get to it. Also, that dictatorships guarantee the Social Order, which is a very necessary prerequisite for any kind of economic accumulation process to be feasible. A form of government in which absolute power is concentrated in a dictator or a small clique, dictatorships are subject to retaliatory actions. We propose this should end.
Democratic nations should not take retaliatory actions against dictatorial governments in order to diminish their legitimacy, their power, and to promote their overthrown in exchange for a democratic alternative. This actions account for the diminishing of economic & diplomatic relations with Burma and Iran and the cut of economic aid to Honduras’ “de facto” Government.
We will prove that these sort of actions can only undermine the possibility of development finally kicking in this countries, since dictatorship is the best way to achieve it.
All the Yes points
Dictatorships breed development though efficient and straighfoward decision making
Dictatorship is a good breeding ground for personal discipline and order
Dictatorships better control the variables of human development
Dictatorships resist to income Redistribution Pressures
Dictatorship is a more economic institution: elections are a luxury reserved for developed countries.
Dictatorships regimes can be a path for countries move on from civil wars and focus on development
Dictatorships have a flexibility in economic policy that breeds growth
Dictatorship helps achieve social stability
The loger lasting and biggest economic miracles have ocurred under dictatorships
Dictatorship outperforms democracy in growth and economic develpment
A dictatorship breeds order and it's a needed step for both development and liberal democracy
Dictators have incentives to promote development and diminish social differences
Summary
All the No points
Opposition defines ambiguity
Opposition baffled yet undeterred!
Dictator’s decisions undermines the people and are unaccountable
Development is not possible when there is no succession in the government
Dictatorship priority is to maintain power
Dictatorship brings profit to dictators and its clique, but not to the citizens
Dictatorship is a threat to diversity and multi ethnicity
Dictatorship transforms national policies into irregularities
Good development should ensures freedom
Development occurs when a dictatorship revert into democracy
http://debatewise.org/debates/1001-dictatorship-is-the-best-path-to...
Here's a book review of "How Asia Works" by Amb Maleeha Lodhi published in The News:
An important new book explains why some countries have become economic tigers in East Asia while others are relative failures or paper tigers. ‘How Asia Works’ by Joe Studwell is a bold and insightful work that is essential reading for anyone interested in understanding the ingredients for economic success in this continent.
It challenges much conventional wisdom in the development debate. Most significantly the book questions key tenets of the so-called Washington consensus, which prescribes free market ‘solutions’ for all economies regardless of their level of development. Studwell establishes that a nation’s development destiny is shaped most decisively by government action and policies. History, writes the author, shows that markets are created, shaped and re-shaped by political power.
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At the very outset, Studwell identifies three critical interventions that successful east-Asian countries and China (after 1978) employed to achieve accelerated economic development. The first, “often ignored”, and now “off the political agenda” in developing countries, is land reform. This restructured agriculture into highly labour-intensive household farming. In the early phase of development, with the necessary institutional support, this helped to generate a surplus, create markets and unlock great social mobility.
The second intervention, as countries cannot sustain growth only on agriculture and must transition to the next phase, is to direct entrepreneurs and investment to industrial manufacturing. Manufacturing allows for trade and technology learning. And trade, says the author, is essential for rapid economic development. Studwell then demonstrates – while challenging the champions of free trade – how nurturing and protection, along with instituting “export discipline”, builds the capacity to compete globally. Manufacturing policy is a key determinant of success he says, as an infant industry strategy offers the quickest route to restructuring the economy towards more value-added activities.
Holding that development is quintessentially a political undertaking, the author sees the relationship between the state and private entrepreneurs as a critical variable. History, he writes, teaches that governments should not run everything themselves. But governments have to use their power and the right policy tools to make private entrepreneurs do what industrial development requires.
The third intervention necessary for accelerated development is in the financial sector, aimed at directing capital initially to intensive, small scale agriculture and to manufacturing rather than services. Studwell argues persuasively that it was the close alignment of finance with agriculture and industrial policy objectives that produced north-east Asia’s economic success.
Detailing the role of financial policy, he illustrates how premature bank deregulation exacted a high price in Thailand and Indonesia. China, on the other hand, and other north-east Asian countries resisted that, instead using financial management to serve development needs and an accelerated economic learning process.
http://www.thenews.com.pk/Todays-News-9-211468-Asian-tigers-and-pap...
Here are a few excerpts from a recent book "Street Smarts" by Hedge Fund Manager Jim Rogers:
"Many Asians say that the Asian Way is first to open your economy, to bring prosperity to your country, and then, only after that, to open up your political system. They say thar the reason the Russians failed is that did it the other way around. Russia opened up its political system in the absence of a sound economy, everybody bitched and complained, and chaos inevitably ensued. As an example of the Asian path to political openness, they point to South Korea and Taiwan, both of which were once vicious dictatorships supported by the United States. Japan was at one time a one-party state supported by the US military. Singapore achieved its current status under one-party, authoritarian rule. All these countries have since become more prosperous and more open.
Palto,in The Republic, says that the way societies evolve is by going from dictatorship to oligarchy to democracy to chaos and back to dictatorship. It has a certain logic, and Plato was a very smart guy. I do not know if the Asians ever read The Republic, but the Asian way seems to suggest that Plato knew whereof he spoke."
Not only is the Asian model different from that of the Soviets, it stands China in marked contrast to those thirty-year dictatorships previously mentioned. Chinese leaders have put a high premium upon changing the country's economy, presumably to seek prosperity for the 1.3 people who live there."
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"And yet,in 1947, when it achieved independence, India was one of the more successful countries in the world, a democratic country. But despite democracy, or maybe because of it, India has never lived up to its potential. China was a shambles as recently as 1980. India was far ahead of it. Bt since then China has left India, literally in the dust....As China rises, India continues to decline relatively. Its dent-to-GDP ratio is now 90 percent, making a strong growth rate virtually impossible."
http://books.google.com/books?id=t_t9swbrmAoC&printsec=frontcov...
Meet 'The Brothers' (Dulles Brothers) Who Shaped U.S. Policy, Inside And Out
Stephen Kinzer on NPR Radio
http://www.npr.org/2013/10/16/234752747/meet-the-brothers-who-shape...
On the Dulles' ability to overthrow regimes in Iran and Guatemala but not in Cuba or Vietnam
They were able to succeed [at regime change] in Iran and Guatemala because those were democratic societies, they were open societies. They had free press; there were all kinds of independent organizations; there were professional groups; there were labor unions; there were student groups; there were religious organizations. When you have an open society, it's very easy for covert operatives to penetrate that society and corrupt it.
Actually, one of the people who happened to be in Guatemala at the time of the coup there was the young Argentine physician Che Guevara. Later on, Che Guevara made his way to Mexico and met Fidel Castro. Castro asked him, "What happened in Guatemala?" He was fascinated; they spent long hours talking about it, and Che Guevara reported to him ... "The CIA was able to succeed because this was an open society." It was at that moment that they decided, "If we take over in Cuba, we can't allow democracy. We have to have a dictatorship. No free press, no independent organizations, because otherwise the CIA will come in and overthrow us." In fact, Castro made a speech after taking power with [Guatemalan President Jacobo] Árbenz sitting right next to him and said, "Cuba will not be like Guatemala."
Now, [Vietnamese Communist leader] Ho Chi Minh was not establishing an open society ... the fact is, he had a dictatorship, he had a closed, tyrannical society, and that made it much more difficult for the CIA to operate. So we find this irony that if [Prime Minister of Iran Mohammad] Mossadegh and Árbenz had been the tyrants that the Dulles brothers portrayed them as being, the Dulles brothers wouldn't have been able to overthrow them. But the fact that they were democrats committed to open society made their countries vulnerable to intervention in ways that Vietnam and particular North Vietnam then were not.
On how things might have been different had the Dulles brothers not intervened
It's quite possible, even likely, had the Dulles brothers not been [in Vietnam] or had acted differently, there never would've been an American involvement in Vietnam at the cost of a million lives and more than 50,000 Americans. Guatemala wouldn't have suffered 200,000 dead over a period of 35 years in the civil war that broke out after they intervened in Guatemala and destroyed democracy there. Iran fell under royal dictatorship and then more than 30 years of fundamentalist religious rule as a result of the Dulles brothers' operations. Had they not intervened in Iran we might've had a thriving democracy in the heart of the Muslim Middle East. ...
So you look around the world and you see these horrific situations that still continue to shake the world, and you can trace so many of them back to the Dulles brothers.
The chaebols: The rise of South Korea's mighty conglomerates
They are cornerstones of the economic, political and social landscape: Part one of a series looks at how these conglomerates -- like Samsung, LG and Hyundai -- saved South Korea from crushing poverty and defined a country's role on the global stage.
https://www.cnet.com/news/the-chaebols-the-rise-of-south-koreas-mig...
In 1953 the South Korean national GDP per capita stood at a mere $67 [Korean]. The US GDP per captia for the same year stood at an unadjusted $2,449. After the political turmoil that followed Japanese occupation and the Korean War, the country was in dire poverty. The threat of North Korea was real -- espionage on both sides of the aisle was commonplace, and the South Korean government of the time was either unable or unwilling to help its people recover.
And then came Gen. Park Chung-hee, the controversial landmark leader of South Korea, who staged a coup, and through a military junta became the president in 1963. Following official recognition of his regime by the US, Park decided that for South Korea to become a strong nation, it needed a strong economy.
Like the corporate trusts of the US in the late 19th and early 20th centuries, a relationship between the government and the private sector was formed that still defines South Korean politics and economy today. Park coaxed, wheedled, intimidated, manipulated and outright threatened the companies for cooperation. But the president also offered incentives -- government and foreign loans, relaxed regulations and tax cuts.
"South Korea can be defined as a 'developmental-state,' where the government actively intervened and worked closely with companies," said Cho Dong-keun, a professor at the department of economics of Myongji Unversity. "In some ways, it was necessary, because the market was imperfect. And the chaebols were born."
The Federation of Korean Industries was formed by the chaebols in 1963 to promote their interest and support Park's drive. It acted as the voice of the chaebols, and its mission was to foster coordination among them. Though influence has somewhat declined, the chairman of the Federation was at one point referred to as the "Prime Minister of Economy" by the press and wielded considerable political power.
Samsung and LG were already flourishing, both among the top ten companies in South Korea even before Park's regime took charge, and the pair didn't always welcome the government's initiatives. For example, Samsung founder Lee Byung-chull and Park disliked each other: Lee, who was older than Park (seniority being very important in Korean culture), thought of the president as an upstart, uneducated thug. President Park, on the other hand, thought of Lee as a man born with a silver spoon in his mouth.
During Park's five-year plans -- rolling periods of government-outlined economic development -- the government sometimes took successful subsidiaries away from the chaebols: On Park's orders, Samsung would cede a bank, a fertilizer manufacturer and a broadcaster, much to its dismay.
The government policy would also bring in new blood -- most famously Hyundai, which began as an unimpressive, middling construction firm, but become a powerful chaebol during Park's presidency. Hyundai's famed founder Chung Ju-yung, a peasant's son and an elementary school dropout, had a do-or-die spirit that Park felt was needed in South Korea. The charismatic Chung clinched projects and showed feats that were considered impossible. With Park's support, Hyundai built the 400km-long Gyeongbu Expressway that connected the capital city Seoul to South Korea's southern city in less than two and a half years.
Ex Dictator Chun Doo Hwan is dead! Dictators Park, Chun and Roh helped turn South Korea into an Asian Tiger. #Economy via
@NYTimes
https://www.nytimes.com/2021/11/23/world/asia/chun-doo-hwan-dead.am...
During the three generals’ combined rule of 32 years, South Korea rose from the ruins of the 1950-53 Korean War to become one of Asia’s Tiger economies, overtaking rival North Korea in industrial output and national income. While Mr. Chun was in office, South Korea tamed its chronic inflation, and its economy was among the world’s fastest growing, expanding an average of 10 percent a year.
His government also overcame huge odds against Japan, its historical enemy, to win the right to host the 1988 Olympics, widely seen as a coming-out party for the once war-torn nation.
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Chun Doo-hwan, South Korea’s most vilified former military dictator, who seized power in a coup and ruled his country with an iron fist for most of the 1980s, dispatching paratroopers and armored vehicles to mow down hundreds of pro-democracy protesters, died on Tuesday at his home in Seoul. He was 90.
His death was confirmed by South Korea’s national police agency.
In 1996, eight years after he left office, Mr. Chun was sentenced to death on sedition and mutiny charges stemming from his role in the 1979 coup and the massacre of demonstrators at the southwestern city of Gwangju the following year. But he was pardoned in 1997 in a gesture of reconciliation, shortly after Kim Dae-jung, a former dissident whom Mr. Chun’s military junta had once condemned to death, was elected president.
Mr. Chun, who ruled from 1979 until early 1988, was also convicted of collecting hundreds of millions of dollars in bribes from wealthy, politically connected families known as chaebol, whose businesses expanded into conglomerates with the help of tax cuts and other government favors.
Unapologetic to the end, Mr. Chun was the last to die among South Korea’s three military general-turned presidents.
As an army captain, he took part in Maj. Gen. Park Chung-hee’s coup in 1961, a move that secured his place in Mr. Park’s military elite. When Mr. Park’s 18-year dictatorship abruptly ended with his assassination in 1979, Mr. Chun, by then a major general himself, staged his own coup to usurp control. He later handpicked his friend Roh Tae-woo, also a former general, as his successor. Mr. Roh, president from 1988 to 1993, died in October.
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“Among South Koreans, his name is synonymous with a tyrannical military dictator,” said Choi Jin, director of the Institute for Presidential Leadership in Seoul. “His positive achievements are far outweighed by his negative legacies — the illegitimate way he came to power and the dictatorial streak that ran through his term.”
Chun Doo-hwan was born on Jan. 18, 1931, to a farming family in Hapcheon, in what is now southern South Korea. Korea was a colony of Japan at the time.
While his father, Chun Sang-woo, ran from debt-collectors and Japanese police officers (after pushing one off a cliff), his mother, Kim Jeom-mun, had high expectations for Doo-hwan, one of four sons. When a Buddhist fortuneteller predicted that her three protruding frontal teeth would block the boy’s path to glory, she rushed into her kitchen and yanked them out with a pair of tongs, according to “Chun Doo-hwan: Man of Destiny,” an authorized biography published after his coup.
After finishing vocational high school, Doo-hwan gave up going to college because he could not pay tuition. Instead, he joined the Korea Military Academy, where he practiced boxing and captained its soccer team as a goalie. (As president, he used to call the head coach of South Korea’s national soccer team in the middle of a match to dictate game strategy.)
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Pakistani defense manufacturers…
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